This is a continuation of the previous article. This is a continuation of the typical methods of monetizing patent rights.
5, Litigation and patent infringement warnings
If another company infringes on your patent rights, you can warn the other company and claim damages by entering into a license agreement with them or by filing a lawsuit against them. However, litigation is time-consuming and expensive and should be done strategically.
6, Building and managing a patent portfolio
By building a portfolio that combines multiple patent rights (which can include design rights, trademarks, etc.) and proceeding with licensing agreements based on this portfolio, profits can be maximized. Alternatively, the entire portfolio could be sold to a specific company.
7, Participation in patent pools and consortiums
This is a way to earn licensing fees by participating in a patent pool or consortium and working with other patent holders to license technology to the market. This is particularly effective for patent rights related to standard technologies.
8, Partnering with investors and venture capitalists
This is a way to monetize patent rights by launching a startup that utilizes the patented technology and obtaining funds from affiliated investors and venture capitalists. If successful, the business based on the patented technology has the potential to generate significant revenues.
9, Leverage tax strategies
In some cases, tax incentives may be available through the use of patent rights. For example, by utilizing the patent box system (currently not established in Japan), a lower tax rate can be applied to earnings related to patent rights.
As explained in the above two articles, the ways to monetize patent rights vary depending on the nature of the patent, the market situation, and the company’s strategy, and also vary depending on the country or region where the patent was acquired. By combining the above methods, it is possible to maximize the value of the patent rights (so-called intellectual property rights) acquired in each country.
If you have any questions or need further advice, please contact us.
(Maruhachi)